CXLIII - UPDATED 6/3 - Coyotes arena deal takes next step after Tempe council votes to open negotiations

[TheLegend]

Without knowing if Bluebird is entirely Meruelo or if any other investors are involved it’s difficult to evaluate that grade from the outside.

For example, if Tempe decides they like everything about the design proposal but are worried about the financial backing that may be something Meruelo can strengthen during a negotiation period by bringing on other partners.

That was my thought as well.

Still with all the other stuff that was in the press I still have to be concerned. Hopefully we find out on Thursday.

Found out tonight I’m off work that day. May have to make the trip over.

But may have another commitment that morning. Chaos week this week for me.

 

[stealth1]

That was my thought as well.

Still with all the other stuff that was in the press I still have to be concerned. Hopefully we find out on Thursday.

Found out tonight I’m off work that day. May have to make the trip over.

But may have another commitment that morning. Chaos week this week for me.

I hope this works out for your team and the fans. I'm sceptical that it will. There is too many things that have to go right for this to work out.

 

[1CasualFan]

RECOMMENDATION: Authorize City Manager or designee to negotiate with Bluebird Development LLC

Well that should make it pretty simple on Thursday.
I think the details of the RFP response are probably more important than the scoring. Not sure that I've see the full RFP response packet posted yet. Long time BOH members might recall the Glendale arena management RFP response packets.

As far as the scoring table goes; I dont think it's very compelling. Bluebird Development, LLC was incorporated in Arizona on 3/12/21. Their score for "Experience developing large mixed-use entertainment projects" is "0" not "140", unless Tempe is giving base points for being able to form an LLC... Obviously, the "80" under Financial strength is pretty comical as well. I assume the RFP evaluation team plugged in "140" on Feasibility the same way they got to 140 on experience, they just made it up.

Regardless, there's nothing wrong with going to formal negotiations. The city's legal advisors probably gave them good guidance on the GPLET mechanism. It's worth Tempe's time to see if the Coyotes have something feasible to offer or if they just came over with some pretty drawings and an absurd ask for public funding.

Separately, SkyHarbor site is apparently down for maintenance at the moment. I'll have to pick up the 5/26 letter URL later.

 

[gstommylee]

Sounds like PHX is pretty much get do what we want or we'll sue you.

 

[TheLegend]

Sounds like PHX is pretty much get do what we want or we'll sue you.

Nyah… turf squabbles like this always go on when you have this many different city governments squished together in one place.

Part of the reason why Westgate ended up in Glendale was a personal feud between then mayor Elaine Scruggs and the mayor of Scottsdale. Got into one of those “Caddyshack” style “snobs vs slobs” battles.

Scruggs wanted to get one up on Scottsdale so bad she ignored the reason why they wouldn’t go for Ellman’s Los Arcos project. And that was Ellman’s lack of deep enough pockets.

 

[mouser]

RECOMMENDATION: Authorize City Manager or designee to negotiate with Bluebird Development LLC

Well that should make it pretty simple on Thursday.
I think the details of the RFP response are probably more important than the scoring. Not sure that I've see the full RFP response packet posted yet. Long time BOH members might recall the Glendale arena management RFP response packets.

As far as the scoring table goes; I dont think it's very compelling. Bluebird Development, LLC was incorporated in Arizona on 3/12/21. Their score for "Experience developing large mixed-use entertainment projects" is "0" not "140", unless Tempe is giving base points for being able to form an LLC... Obviously, the "80" under Financial strength is pretty comical as well. I assume the RFP evaluation team plugged in "140" on Feasibility the same way they got to 140 on experience, they just made it up.

Regardless, there's nothing wrong with going to formal negotiations. The city's legal advisors probably gave them good guidance on the GPLET mechanism. It's worth Tempe's time to see if the Coyotes have something feasible to offer or if they just came over with some pretty drawings and an absurd ask for public funding.

Separately, SkyHarbor site is apparently down for maintenance at the moment. I'll have to pick up the 5/26 letter URL later.

I’m sure these evaluations are based on the partners Bluebird has involved to design and build the project. Not the history of Bluebird LLC itself.

Involve architects with a background in designing arenas and mixed use developments. Have a general contractor with experience handling this scale of a project.

 

[1CasualFan]

I’m sure these evaluations are based on the partners Bluebird has involved to design and build the project. Not the history of Bluebird LLC itself.

Involve architects with a background in designing arenas and mixed use developments. Have a general contractor with experience handling this scale of a project.

I'm sure you're right. I just think it's comical that they created the NewCo just to submit the RFP. They were kind of clairvoyant to know to set up the company in March for an RFP that posted in July. All of that aside, I still think it makes sense for Tempe to negotiate - the AZ Supreme Court decision on the GPLET math should keep the city and the team honest. We'll see what they come up with.

 

[Yukon Joe]

I'm sure you're right. I just think it's comical that they created the NewCo just to submit the RFP. They were kind of clairvoyant to know to set up the company in March for an RFP that posted in July. All of that aside, I still think it makes sense for Tempe to negotiate - the AZ Supreme Court decision on the GPLET math should keep the city and the team honest. We'll see what they come up with.

Incorporating is not terribly expensive. 20 years ago at the firm I worked for we'd do it for about $1000.

 

[TheLegend]

Might as well get this up before someone else does….

Runways, apartments and businesses: The very complicated case behind the Coyotes' arena

The public will get their first chance to comment on the $1.7 billion project at a City Council meeting Thursday. The council could start negotiations right after.

www.12news.com

Beyond all the clicky bait it generally summarizes things.

The real drama though comes in the video clip from this morning’s broadcast attached to the article.


Edit: Also….. Tempe just posted there is a regular council meeting scheduled for the following Thursday (6/9). Really can’t see them trying to fast track this proposal, but who knows…. will watch for an agenda when it drops.

 

[OG6ix]

Let's say that the yotes don't end up getting the arena, can they get out of their ASU deal at anytime or is it locked in for 5 seasons?

 

[OthmarAgain]

RECOMMENDATION: Authorize City Manager or designee to negotiate with Bluebird Development LLC

Well that should make it pretty simple on Thursday.
I think the details of the RFP response are probably more important than the scoring. Not sure that I've see the full RFP response packet posted yet. Long time BOH members might recall the Glendale arena management RFP response packets.

As far as the scoring table goes; I dont think it's very compelling. Bluebird Development, LLC was incorporated in Arizona on 3/12/21. Their score for "Experience developing large mixed-use entertainment projects" is "0" not "140", unless Tempe is giving base points for being able to form an LLC... Obviously, the "80" under Financial strength is pretty comical as well. I assume the RFP evaluation team plugged in "140" on Feasibility the same way they got to 140 on experience, they just made it up.

Regardless, there's nothing wrong with going to formal negotiations. The city's legal advisors probably gave them good guidance on the GPLET mechanism. It's worth Tempe's time to see if the Coyotes have something feasible to offer or if they just came over with some pretty drawings and an absurd ask for public funding.

Separately, SkyHarbor site is apparently down for maintenance at the moment. I'll have to pick up the 5/26 letter URL later.

Given the date of incorporation I presume the RFP is mostly formality. Will be interesting on how the negotiation progresses and what sort of timeline and other parameters they place on the process.

I would guess (well, hope really given the saga here) that they actually have people with development expertise involved and the LLC is merely for structuring, no?

 

[OthmarAgain]

Also interested in how the emergence of market volatility, which was not an issue when this process kicked off, might impact financing.

 

[awfulwaffle]

Let's say that the yotes don't end up getting the arena, can they get out of their ASU deal at anytime or is it locked in for 5 seasons?

Pretty sure it's a 3 year deal with a team option for a 4th.

 

[OG6ix]

Pretty sure it's a 3 year deal with a team option for a 4th.

So lets say there is no arena options, they are stuck in the lease for 3 years? Sounds pretty brutal.

 

[TheLegend]

So lets say there is no arena options, they are stuck in the lease for 3 years? Sounds pretty brutal.

If the Tempe proposal goes through it’s going to be 2 1/2 years minimum (land remediation, construction) before he can move in. IF he has a backup plan for Arizona it’s going to be the same. So he’s stuck there no matter what.

Now if it comes to be he were to sell the team for relocation. He’s out his investment at ASU. ASU was paid up front so it’s no sweat off their back.

If he relocates himself to a ready built arena in another market, same thing.

 

[Ernie]

So lets say there is no arena options, they are stuck in the lease for 3 years? Sounds pretty brutal.

They only pay a couple of million per year. Not very hard to eat that.

 

[Stumbledore]

If the Tempe proposal goes through it’s going to be 2 1/2 years minimum (land remediation, construction) before he can move in. IF he has a backup plan for Arizona it’s going to be the same. So he’s stuck there no matter what.

Now if it comes to be he were to sell the team for relocation. He’s out his investment at ASU. ASU was paid up front so it’s no sweat off their back.

If he relocates himself to a ready built arena in another market, same thing.

If he sells the team, his ASU investment is figured into the selling price.

Merulo may be a crook, but he's not stupid.

 

[TheLegend]

If he sells the team, his ASU investment is figured into the selling price.

Merulo may be a crook, but he's not stupid.

You ignored the part where I said relocation. A team without a permanent home is a depressed asset.

What he doesn't get back from ASU is a great write off.

There's still the factor of what he actually paid to get the franchise.

 

[Stumbledore]

You ignored the part where I said relocation. A team without a permanent home is a depressed asset.

What he doesn't get back from ASU is a great write off.

There's still the factor of what he actually paid to get the franchise.

Yep, right again. I ignore lots of stuff you write.

But I don't ignore you because you've got tons of stuff to say and more often than not I agree with you.

 

[TheLegend]

Yep, right again. I ignore lots of stuff you write.

But I don't ignore you because you've got tons of stuff to say and more often than not I agree with you.

Apologies for the sour tone previously.

I try to keep it monotonal and it doesn't always come across right.

 

[TheLegend]

Coyotes put this site up not long ago as a presentation to the public.

Coyotes in Tempe

www.coyotesintempe.com

 

[awfulwaffle]

Coyotes put this site up not long ago as a presentation to the public.

Coyotes in Tempe

www.coyotesintempe.com

1.5 Million Tons, that's a lot of trash, gross.

 

[1CasualFan]

Given the date of incorporation I presume the RFP is mostly formality. Will be interesting on how the negotiation progresses and what sort of timeline and other parameters they place on the process.

I would guess (well, hope really given the saga here) that they actually have people with development expertise involved and the LLC is merely for structuring, no?

AECOM Hunt is my understanding. Should be fun to see them try to thread the needle between the GPLET and the bond market.

 

[Stumbledore]

AECOM Hunt is my understanding. Should be fun to see them try to thread the needle between the GPLET and the bond market.

Or what's left of the bond market.

 

[Llama19]

Tempe's plan for the Arizona Coyotes will be nothing but trouble for Sky Harbor airport

Opinion: It's easy to predict what will happen when Tempe builds 1,000 new homes near the airport's southern runway, and none if it is good for any of us.

Source: www.azcentral.com/story/opinion/op-ed/2022/06/01/tempe-plan-arizona-coyotes-spells-trouble-sky-harbor-airport/9996700002/